The informal economy as a catalyst for sustainability

Abstract

Sustainability typically involves the balancing of three major factors: the economy, the environment, and some notion of equity. Though the economy is already a key aspect, the recognition of the informal economy, seems to be absent from the many possible permutations of these three. This paper will explore the various aspects of the informal economy and how it can make a considerable impact on achieving a more sustainable future. Specifically, this paper focuses on how the informal economy can encourage the sustainable use of goods, while offering an alternative to the regulated market economy. By supporting the informal sectors such as farmers markets, street vendors and non-market activities, a shift away from a car-dominated society and singular economic trajectory can begin. The informal sector can provide, social capital, promote local economies, create jobs and provide the need economic shift toward a sustainable future.